The European Union will continue to experience minimal construction related growth in the 1st Q of 2025 as the economic consequences from the war in Ukraine grinds on. The Euro Zones economies have been challenged in 2024; prospects overall appear to be improving slightly. Energy price spikes have started to fall in the last 12 months, which should assist the construction sectors as we move into 2025. The value of the Euro has been progressively declining against the US dollar for the best part of 2 years, some economists are projecting that the Euro could fall to between 0.85 and 0.90 to the US dollar in the next 12 months. This (of course) will impact inflation in Europe and could be the catalyst to increase construction related materials costs.

European construction remains sluggish, a couple of countries such as France, Poland, Norway and the Netherlands are starting to see increased opportunities, but for the most part the rest of Europe will see slow growth in 2025.

The UK held a General Election on July 4^th, the Labor Party won a large majority, this will impact the UK construction market significantly, time will tell how the UK economy and the construction industry will be impacted with this change of Government. The UK experienced zero growth last year and this trend is continuing with construction activity in the UK down by 10% to 15% from a year ago. Since the 4^th of July General Election the UK Pound has fallen to 1.30 / US $ a drop of 7% to the US Dollar in 8 months, not a particularly good start to the Labor Government handling of the economy. The UK & specifically the London immediate area remains a leading economic & business center, however the rest of the UK continues to struggle. A number of multinational internet / online procurement type technology companies have decided to invest in new UK facilities. This $6+ billion investment will commence in the next 18 months and will employ more than 3,500 construction workers and will lead to 1,000’s of permanent well-paying technology jobs.

The incoming Labor Government will endeavor to boost the economy, which usually translates to addition funds spent on construction related capital. Unfortunately, a number of major and mid-sized UK construction related companies have gone out of business or into administration in 2024. The high speed HS2 rail link from London to Birmingham has been significantly scaled back, and plans to build new NHS hospitals have been put on hold

Germany continues to be the major economy in the EU. Economic activity in Germany is expected to decline by 1.7% in 2025. Glumness flourishes in the Gaman construction sector, the last 3 years have been extremely difficult, a change of Government might help the situation for German construction related firms in 2025. Tech-billionaire Elon Musk has endorsed the German Alternative für Deutschland party on X, writing: “Only the AfD can save Germany.”

France’s leadership in safe & sustained nuclear energy / engineering & construction knowledge plays a crucial role in Europe’s calling for clean energy & zero carbon emissions.

We are starting to see an increase in new and revamped Industrial facilities across the UK, Germany, France and Italy as we move into the 1st half of 2025, perhaps an indication that these countries and the rest of Europe are set to see a more normal construction situation in the 1^st half of 2025 and going into 2026.